21st November 2008
Retail Distribution Review must avoid 'a one size fits all' approach says APCIMS
The Association of Private Client Investment Managers and Stockbrokers (APCIMS) is calling for caution and common sense to prevail ahead of the FSA publishing its long awaited paper on the Retail Distribution Review.
Ian Cornwall, Director of Regulation at APCIMS said:
“We hope that our constructive engagement with the FSA will mean the proposals in the RDR will recognise our firms’ business model. Our members provide long term investment advice based on relationships with their clients. Our firms provide investment services over a range of financial instruments of which packaged products are only a small part.
“We are looking for clarity, pragmatism, moderation and realism in this announcement. We need clarity on how the RDR will impact our sector, pragmatism in recognising different business models and risks, moderation to ensure rules do not gold plate MiFID and realism to ensure revised regulations do not increase firms’ costs.
“We very much hope that the proposals in the RDR do not make the mistake of previous initiatives by imposing a ‘one size fits all’ approach to our sector. If the regulator fails to accommodate the specifics of the private client business model, consumers may be disadvantaged by higher charges, mountains of paperwork and reduced choice.”
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For more information please contact:
Dirk Paterson, Head of Communications, APCIMS
on 020 7448 7100
Mobile: 07507 855 428
Email: dirkp@apcims.co.uk
Notes to editors:
APCIMS will be able to give initial comment on the RDR by midday on Tuesday 25th after it is released.
Regulation rates:
During the year since the introduction of MiFID APCIMS has counted 4114 A4 pages of FSA regulation information which our firms have to review. Regulatory initiatives come thick and fast and are often communicated in the form of reports or even speeches. It is incumbent on firms to assess the applicability of each of their business and if necessary allocate significant resources to their implementation. Much of the FSA guidance is not subject to consultations or cost benefit analysis, making them expensive and unjustifiable.
APCIMS
- More than 12 million people in the UK currently invest directly in stocks and shares and other financial instruments to secure their financial futures
- APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and the institutions in which we have our money
- Around £400 billion of the country’s wealth is under the management of our members
- Our aim is to ensure that the regulatory, tax and other changes across Europe minimize impact on the investment community
- We want to lead the debate on regulation in Europe, with UK regulators and with British parliamentarians to make sure consumers are protected while at the same time our industry flourishes in the UK.